How to Open Your First Forex Trade
- Understand your trading platform. This is an excellent way to prevent mistakes when placing trade orders. You must recognise the platform’s functions and tools to be a successful trader.
- Pick a currency pair. Your trading approach will decide the currency pair you choose. Nevertheless, many traders use high-volume trade pairs (major currency pairs).
Major currency pairs have low spreads. Furthermore, because of the high trade volume and low spread, technical analysis is correct. This makes them easier to manage than exotic currency pairs.
Many newbies trade the common major currency pairs. Despite this, you can trade other pairs provided you have enough funds.
- Study the market. Research and analysis must be the basis of your trading actions. Without it, you are heading towards failure. Study live and historical charts, check the news for influential economic declarations.
- Fix your ‘stop loss and take profit’ level. This isn’t compulsory, but it’s advisable to follow it. Experts understand the role of stop loss and take profit levels in long-term success.
Fixing stop loss helps you reduce losses when the market deviates from your predictions. Fixing take profit makes sure your trade ends with profit if the market drops.
- In conclusion. When the trade ends, assess your actions with your initial Forex position. Was it great? Was it terrible? What made it great: careful planning or dumb luck? What made it terrible: no planning or rash decisions?